Louisville Chapter 13 Bankruptcy Attorneys

Eligibility and Requirements for Chapter 13 Bankruptcy

Facing financial difficulties can be overwhelming and stressful. If you’re struggling with debt, a Chapter 13 bankruptcy may be a viable solution to help you regain control of your financial situation. At Obi Law Group, PLLC, our dedicated Indianapolis Chapter 13 bankruptcy attorneys are here to guide you through the process, protect your rights, and help you achieve a fresh financial start.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy, also known as a wage earner’s plan, allows individuals with regular income to create a repayment plan to pay back all or part of their debts over a specified period, typically three to five years. This type of bankruptcy is ideal for those who want to keep their assets, such as their home or car, while reorganizing their debts in a manageable way.

Key Features of Chapter 13 Bankruptcy:

• Repayment Plan: You propose a repayment plan to the bankruptcy court, outlining how you intend to pay off your debts over the next three to five years.

• Asset Protection: Unlike Chapter 7 bankruptcy, which may involve liquidating assets, Chapter 13 allows you to keep your property while making manageable payments.

• Debt Limits: Chapter 13 has specific debt limits, making it suitable for individuals with a steady income who can make monthly payments toward their debts.

• Automatic Stay: Filing for Chapter 13 bankruptcy triggers an automatic stay, which immediately halts most collection actions, including lawsuits, garnishments, and foreclosure.

How Long Does Chapter 13 Take?

In Chapter 13, an individual’s unsecured debts are reduced and restructured into a payment plan that can last anywhere from 3 to 5 years depending on an applicant’s total income and how much is owed. Additionally, a Chapter 13 bankruptcy will appear on a credit report for 7 years and an individual may be eligible to file a second time after a 6-year period.

Two main factors which determine the length of a repayment plan include:

• Total income: A person’s total income is typically the first factor that is considered. An applicant who makes less than the median monthly salary in the state will qualify for a repayment period of three years. Those who make more than this amount will typically be put on a five-year repayment plan.

• Time needed to complete payment: A person who qualifies for a three-year schedule may still request a five-year plan if they can show that additional time within the bankruptcy process will allow them to better meet repayment requirements. Whichever route a person qualifies for, five years is the maximum amount of time a chapter 13 bankruptcy can last.

Understanding the Benefits of Chapter 13 Bankruptcy

Choosing to file for Chapter 13 bankruptcy can be a significant decision, but understanding its benefits can help you feel more confident in your choice. Unlike Chapter 7 bankruptcy, which liquidates assets, Chapter 13 allows you to reorganize your debts while keeping your property. Here are some compelling advantages of filing for Chapter 13 bankruptcy:

• Protection from Foreclosure: If you're facing foreclosure on your home, Chapter 13 can provide a pathway to catch up on missed mortgage payments while keeping your home safe.

• Flexible Repayment Plans: Tailor your repayment plan to fit your financial situation, allowing you to pay off debts over a manageable period of three to five years.

• Debt Discharge: After completing your repayment plan, many unsecured debts can be discharged, giving you a fresh start financially.

• Keep Your Assets: Unlike Chapter 7, you can retain valuable assets such as your home and car, making it an attractive option for many individuals.

• Reduction of Interest Rates: You may be able to negotiate lower interest rates on certain debts, making repayment more feasible and less burdensome.

Get Professional Chapter 13 Bankruptcy Guidance from Obi Law Group, PLLC

As you file under Chapter 13, you will be able to take note of the unique advantages within bankruptcy. Lien stripping is one such benefit that involves the removal of a second mortgage if you have more than one. If you are past due on your automobile loan, it may be possible to repay the value of the vehicle, rather than the value of the note.

Chapter 13 Bankruptcy Eligibility

Chapter 13 isn’t for everyone, it’s important you seek counseling or other bankruptcy alternatives before getting started. If you are determined to start your process it’s important to find out if you qualify and that you meet the requirements needed for it.

Some requirements you may need to be eligible includes:

• Showing a regular income
• Being current on tax filings
• Have not filed for any sort of other bankruptcy
• Not being a business filing - Chapter 13 is only available for individuals
• Having debt under the Chapter 13 debt limits

The process continues with additional requirements that include credit counseling and other debtor education course required by the government. Followed by that you will begin to file the process. Jackson & Oglesby Law, LLC can help you determine whether you qualify for Chapter 13 bankruptcy, contact our team today. Our attorneys are prepared to guide you through all aspects of bankruptcy.

The Chapter 13 Bankruptcy Process

Navigating the Chapter 13 bankruptcy process can be complex, but our attorneys are here to help every step of the way:

• Initial Consultation: We begin with a free consultation to discuss your financial situation, assess your eligibility for Chapter 13, and outline your options.
• Preparing Your Petition: Our team will gather necessary financial information and prepare your bankruptcy petition and repayment plan.
• Filing Your Case: We will file your Chapter 13 bankruptcy petition with the court, triggering the automatic stay to protect you from creditors.
• Meeting of Creditors: You will attend a meeting of creditors, where you will answer questions about your financial situation and repayment plan.
• Court Approval: The bankruptcy court will review your repayment plan and either approve it or request modifications.
• Making Payments: Once your plan is approved, you will make monthly payments to a bankruptcy trustee, who will distribute the funds to your creditors.
• Completion of Plan: After successfully completing your repayment plan, most remaining unsecured debts will be discharged, providing you with a fresh financial start.

Why Choose Obi Law Group, PLLC?

At Obi Law Group, PLLC, we are committed to providing personalized legal services tailored to your unique needs. Here are some reasons to choose us as your Chapter 13 bankruptcy attorney in Louisville:

• Compassionate Support: We recognize the emotional toll financial difficulties can have on individuals and families. Our team offers compassionate support throughout your bankruptcy journey.
• Tailored Solutions: We take the time to understand your financial situation and provide tailored solutions that align with your goals.
• Strong Advocacy: We will advocate fiercely on your behalf, ensuring your rights are protected and that you receive the maximum benefits of the bankruptcy process.

Contact Our Louisville Chapter 13 Lawyers

If you are struggling with debt and considering Chapter 13 bankruptcy, don’t navigate this process alone. Contact Obi Law Group, PLLC today for a free consultation with our experienced Indianapolis Chapter 13 bankruptcy attorneys. We are here to help you regain control of your finances and pave the way for a brighter financial future. Let us help you take the first step toward financial freedom today!